A question of money: Diversifyto conquer the deposit dangers

Irish residents are liable for top-rate income tax on deposit interest earned abroad so you need a sound, tax-effective plan before moving money offshore

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i>JH writes from Cork: I am a pensioner with several deposit accounts and
investments, each worth less than the limit of €100,000 per customer per
institution covered by Ireland’s deposit guarantee scheme. I do not need the
money for everyday expenses. I am nervous that it might not be safe if
Ireland defaulted on its debt or if the euro collapsed. I am considering
shifting money abroad into American dollars, sterling and New Zealand
dollars.

Can I do this legally and what are the risks? Would I have a tax liability
in Ireland on interest earned outside the state and, if so, could I claim
credit for tax paid abroad? Which financial institutions in Northern Ireland
are guaranteed by the UK government?

It sounds as if you could use a wealth review by an experienced, fee-based
independent adviser. If the bulk of your funds is in cash, in Ireland or